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Ktbird
New Member

Different tax owed depending on which state completed first

In 2022, I resided all year in Colorado, however I sold property in CA for a gain, which had been my primary home but converted to rental property in 2020.  Using turbo tax premium, if I complete the CA non-resident before the CO resident I get a refund from CO but owe more in CA. If I complete the CO resident first, I pay less in CA, more in CO but about $900 less overall.  I'm not changing any info. Called support but they said I need to pay for a tax expert. 

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1 Reply
MarilynG1
Employee Tax Expert

Different tax owed depending on which state completed first

Yes, you should prepare your Non-Resident California return first.  If you had a Gain from selling Rental Property in California (which is often the case), and you paid no CA Tax in 2022, you would owe tax to California.

 

Sounds like you did it correctly the first time.  Colorado would reduce tax owed for tax paid to California (which is why you need to prepare CA first, so you can include the tax amount paid/due to CA in your Colorado return as a credit).

 

In the Colorado interview, you will be able to enter the CA tax amount that your California return calculated.

 

Make sure you entered that you 'earned income in another state' in the Personal Info section.

 

Here's more info on Credit for Tax Paid to Another State and How to File a Non-Resident State Return.

 

@Ktbird 

 

 

 

 

 

 

 

 

 

 

 

 

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